Environmental and Resource Economics

, Volume 44, Issue 3, pp 441–456 | Cite as

The Value Relevance of Financial and Non-Financial Environmental Reporting

  • José M. Moneva
  • Beatriz Cuellar


Previous literature on the analysis of the relationship between environmental reporting and financial performance shows mixed results, due to the use of a broad variety of research methods and the lack of objective environmental performance measures. This paper adopts a new approach to explore this relationship, analysing the value relevance of different types of financial and non-financial environmental disclosures. Furthermore, the analysis includes two different types of environmental reporting: compulsory and voluntary. This study examines a sample of listed Spanish companies, using a regression model based on the Ohlson equity-valuation framework. Results suggest a significant market valuation of financial environmental disclosures (investments, costs and contingencies), but not of non-financial. Furthermore, our evidence corroborates the increase of the value relevance of compulsory environmental information.


Environmental disclosures Compulsory standards Value relevance Ohlson 


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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  1. 1.Department of Accounting and FinanceUniversity of ZaragozaZaragozaSpain

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